Bitcoin’s 2016 Halving: What is It and Why Should You Care?

In 291 days a major event is going to happen in the Bitcoin ecosystem – The Block Halving. Although it may sound like a pagan ritual which includes the sacrificing of virgins and opening gateways to parallel worlds, the block halving event is real and it’s important.

Let me explain.

The supply of Bitcoin is finite

Whenever a miner solves a Bitcoin block he gets Bitcoins as a reward, that’s how Bitcoins come into this world. If you’re unfamiliar with Bitcoin mining this short video will get you up to speed:

When Satoshi Nakamoto set up the rules for the Bitcoin protocol he stated that the number of bitcoins generated per block is set to decrease geometrically (by 50%) every 210,000 blocks. Since 6 blocks are found on average within an hour and halving happens once every 210,000 blocks, this means that every 4 years (give or take) there will be a halving event.

This basically means that the reward the miners will be reduced to 50% of what it used to be. So if today each miner receives 25 Bitcoins for solving a block, after the halving event he will receive only 12.5BTC. Following this math, the final number of Bitcoins will

Read more ... source: Bitell